- Yield farming got an abrupt reality check yesterday as two tokens, Pizza and Hotdog, crashed spectacularly
- The crashes came just hours after a caustic post appeared on 4chan decrying the recent DeFi movement
- The stupidity of the food-based meme tokens might finally have seen its end
The concept of yield farming has been savaged by a caustic post on social media just hours before two yield farming tokens, Pizza and Hotdog, crashed spectacularly. The post, put on 4chan yesterday evening, criticized the advent of yield farming and the “scam-tier horseshit” projects associated with it, warning that the fallout of the DeFi bubble burst will be “severe” and “long term”.
Caustic Post Rips Into Yield Farming
Yield farming has exploded in popularity in recent weeks, with every man and his dog seemingly throwing their ETH at the latest project, with the first such projects, such as YFI, attracting huge attention and investment, soaring to $39,000 in value last week. However, copycat projects have since flooded the market, with a whole food-based sub-genre developing, kicked off by the Yam fiasco a couple of weeks ago.
To anyone who has any sense of subjectivity the whole thing is a complete fraud, which was picked up by an anonymous 4chan poster who cut straight to the point with an incredible post on the subject:
The poster is absolutely right in that the ETH fees have caused regular traders on non-Uniswap decentralized exchanges to stay out of trades, and it will certainly have frightened new entrants away from engaging in the DeFi space.
The Bust After the Boom?
The poster suggests, as we did back in June, that the DeFi yield farmin craze has turned out to be the 2017 ICO boom writ large, with poorly executed copy-paste protocols thrown out into the space without being audited, purely so that early entrants can ‘earn’ as much ETH as they can in the early days before cashing out.
Never has a concept been so cleanly exemplified than mere hours after the 4chan post was put up – Pizza and Hotdog, two of the new breed of food-based yield farming tokens, crashed spectacularly:
$4000 to $1 in 5 minutes.
ok can you guys stop trading pic.twitter.com/cZRTBfyJj3
— lowstrife (@lowstrife) September 2, 2020
The pizza token on Uniswap died a brutal death 🍕 pic.twitter.com/rWcap2NGML
— Zack Voell (@zackvoell) September 2, 2020
The collapse of these two projects highlights the risks involved in these types of yield farming DeFi plays and could well prove to be the moment where the meme coin conveyor belt slows down. Although with human greed being what it is, that might be more hope than expectation.